Tariff anxiety: How HR can guide frontline workers and their companies through trade uncertainty
President Trump’s aggressive tariff policies are creating unprecedented anxiety among America’s frontline workforce, and HR leaders play an indispensable role in creating stability and support among their most vulnerable employees.
A survey of 5,000 frontline workers by HCM platform UKG reveals that more than half (52%) fear tariffs will lead to layoffs, while three-quarters (74%) believe these policies will impact their future earnings. That anxiety isn’t distributed equally — 3 in 5 Gen Z workers fear job loss compared to 3 in 10 boomers. The stress is already changing behavior, with 70% of frontline workers modifying their work habits by taking on more hours, building skills and increasing savings.
Those fears are not unfounded. Since Trump announced a wave of tariffs, economic indicators have shown concerning trends. Commerce Department data indicates the U.S. economy contracted at an annual rate of 0.3% in the first quarter, with consumer confidence falling to its lowest level since the pandemic.
In all this, it is frontline employees face unique exposure to trade policy shifts. After all, unlike salaried staff, a forklift driver or store clerk sees policy ripple straight into their paychecks.
George Carrillo, co-founder and CEO of the Hispanic Construction Council, points out that these positions typically offer fewer protections such as robust employee benefits, stable contracts or financial cushions, leaving workers with little room to manage disruptions. “Jobs in sectors like manufacturing, retail and logistics are highly sensitive to fluctuations in supply chains or consumer demand,” he said. “When a store reduces hours or a factory slows production because of reduced shipments, frontline workers are often the first to be affected, facing cut hours or sudden layoffs.”
Jim Cichanski, founder of the HR consultancy Flex HR, notes that many frontline workers may not fully understand economic equations, supply and demand theories. “Therefore, their behavior is overcome by their fears and anxiety,” he said.
Employment lawyer Kelsey Szamet notes that frontline employees suffer an uneven burden of the negative consequences of uncertainties in trade policy because they are usually the first group affected by cost-reduction measures. Their jobs are particularly vulnerable to supply chain disruptions and changing customer purchasing patterns driven by tariff impositions, she explains.
HR’s action plan
Workplace experts suggest that HR departments prioritize the following:
Transparent communication. Employment lawyer Kelsey Szamet recommends that “employers — especially HR departments — should prioritize transparent communication about how trade policies might impact operations.” Cichanski suggests bringing in financial professionals to explain market impacts and show examples of the stock market, what they see happening to their 401K monies, and what it means on long term investments.
“This is all has to do with appropriate communications to workers,” he said. “Prepare and host a training for leadership and management, then call a meeting to explain the effects to a worker’s position in the company.” He adds that if layoffs become necessary, “be honest with employees. HR should plan for it.”
Cross training and skills development. Experts advise creating cross-training pathways that let workers transition to departments less impacted by the tariffs. Carrillo explains that “expanding skill sets is a powerful way to create a buffer against job loss, as more versatile employees are better positioned to take on different roles within their organizations or pivot to new industries if needed.”
Implementation should include structured programs allowing frontline employees to acquire skills across multiple operational areas. For example, workers in retail might learn basic data analytics to help track inventory or customer trends, making them valuable even if operations shrink.
Financial support and mental health resources. With nearly three-quarters of frontline workers concerned about earnings, financial education is crucial. Carrillo recommends helping workers “build a financial safety net by developing saving habits, no matter how small, to create a cushion for short-term emergencies.”
Additionally, providing access to mental health support can help manage the psychological burden of economic uncertainty. The prolonged stress of job insecurity can impact productivity and well-being, making mental health resources a critical component of comprehensive support.
Generation-specific strategies. The anxiety gap between generations calls out for a more tailored approach. For Gen Z (63% anxiety), the focus should be on skills development and digital capabilities. For mid-career workers, cross-departmental experience should be emphasized. And for boomers, (28% anxiety), consider mentorship roles and potential retirement options.
Cichanski points out, “A lot of baby boomers are still working because they always worked and feel they will feel lonely without working. This group may elect to take a retirement scheme” if reduction strategies become necessary.
As Trump’s tariffs threaten to send shockwaves through businesses of all kinds, HR leaders have an increasingly critical role in building workforce resilience, according to experts. By implementing targeted support strategies, they can guide their companies in transforming uncertainty into opportunity.
As Szamet puts it, “Open communication and a demonstrated commitment to developing employee resilience can go a long way towards reducing anxiety and enhancing loyalty.”